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Swaraj Engines - M&M Acquires Further Stake, To Be Sole Promoter Entity: ICICI Direct

Swaraj Engines - M&M Acquires Further Stake, To Be Sole Promoter Entity: ICICI Direct

<div class="paragraphs"><p>(Source: Company Website/ Swaraj Engines Ltd.)</p></div>
(Source: Company Website/ Swaraj Engines Ltd.)

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ICICI Direct Report

Swaraj Engines Ltd. is involved in manufacturing diesel engines (20- 85 horsepower) for Mahindra and Mahindra Ltd.’s Swaraj brand of tractors.

M&M has informed exchanges about acquisition of 21,14,349 equity shares constituting 17.41% of the paid up equity share capital of Swaraj Engines from Kirloskar Industries Ltd. for Rs 296 crore i.e. Rs 1,400 per share.

Post this acquisition, M&M’s stake in Swaraj Engines will increase to 52.13% versus 34.72% earlier with Swaraj Engines now being classified as a subsidiary of M&M. With this acquisition M&M now becomes the sole promoter at Swaraj Engines.

Structurally, in terms of decision making, we do not foresee any change as the top management at Swaraj Engines were all M&M veterans with automotive division head always on Swaraj Engines board.

We expect Swaraj Engines’ growth to largely mirror the tractor growth at Swaraj brand of tractors at M&M, as was the case in past.

Click on the attachment to read the full report:

ICICI Direct Swaraj Engines Company Update.pdf

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